PALMOILMAGAZINE, KUALA LUMPUR – On Tuesday, October 10, 2023, the Malaysian Palm Oil Board (MPOB) reported that palm oil stocks in Malaysia reached their highest level in the past eleven months by September 2023, raising concerns about palm oil demand.
The stockpile increased by 9.6% compared to August 2023, totaling 2.31 million metric tons. This marks the fifth consecutive monthly increase in Malaysia, which is the world’s second-largest palm oil producer.
In September, the stock of Crude Palm Oil (CPO) surged by 4.33%, reaching 1.83 million tons, while exports saw a decrease to 1.2 million tons.
Survey by Reuters predicted that the stock could be 2,38 million tons or increased 12,05% in the period; the production could be 1,86 million tons while the exports could be 1,32 million tons.
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Traders in Mumbai mentioned the stock also increased just like the markets expected. The stock in Malaysia could be increasing to be 2,5 million tons by the late of December.
“Palm oil is difficult to get more expensive because other vegetable oils are available in competitive price,” unnamed traders mentioned.
India and China – two biggest palm oil importers could decrease their demands for the next several months because their stock also increases.
Data in MPOB showed that palm oil consumption in the country increased almost twice month on month to be 494.000 tons in September, as Anilkumar Bagani, Research Chief in Sunvin Group, vegetable trader in Mumbai, said.
The increasing stock could be a loss for palm oil globally though it is predicted that the production would be decreasing because of El Nino phenomenon. El Nino that makes hot weather and drought could be the reason to get palm oil more expensive. (T2)
